[Solved] Orange Inc

Question 114
Multiple Choice

Orange Inc.offers a discount on an extended warranty on its oPhone when the warranty is purchased at the time the oPhone is purchased.The warranty normally has a price of $150,but Orange offers it for $120 when purchased along with an oPhone.Orange anticipates a 75% chance that a customer will purchase the extended warranty along with the oPhone.Assume Orange sells to 1,000 oPhones with the extended warranty discount offer.What is the total stand-alone selling price that Orange would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations in those 1,000 oPhone contracts?

A)$0
B)$22,500
C)$30,000
D)$120,000

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions

3.5K

Study sets

66.5K

Quizzes

5.9M

Questions

Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans